SGX will represent broader views in MAS review group: CEO
It also includes other public and private sector representatives
THE review group set up by the regulator to improve Singapore’s stock market will engage a wider group beyond its own members, said Loh Boon Chye, the chief executive officer of the Singapore Exchange (SGX) Group.
Currently, the review group includes a representative from SGX, as well as other public and private sector representatives.
Some other members of the review group are Dilhan Pillay, chief executive of Temasek, and Lai Chung Han, permanent secretary for development in the Ministry of Finance.
But Loh assured that the group will seek the views of those outside the group. “We will obviously represent what we hear and what is being suggested to us by the broader ecosystem,” he said.
Loh was responding to questions by the media at SGX’s financial results briefing on Thursday (Aug 8) about the composition of the review group and if industry players such as brokers and remisiers should be part of the group.
SGX’s chairman Koh Boon Hwee is a member of the 10-person group which was convened last Friday. The group is chaired by Second Minister for Finance and Monetary Authority of Singapore (MAS) board member Chee Hong Tat.
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The group will recommend measures to aid in the development of the equities market in Singapore and complete a report within 12 months.
Several industry players had questioned the composition of the review group.
For instance, S Nallakaruppan, president of The Society of Remisiers (Singapore) told The Business Times that market practitioners such as brokers would be better able to address the issues in the public equity market compared to policymakers who may have no direct experience in the public equity market.
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“If they want to have solutions, they need to include people in the frontline who are tackling the market day-to-day,” said Nallakaruppan.
Loh said at the briefing that SGX will seek views outside the group.
“Look, the group has just been formed. SGX will be part of the group and the work stream, and we will also welcome feedback as we engage the broader ecosystem and their inputs for consideration,” he said.
His comments reiterated what MAS’ Chee said when the announcement of the review group was made last week.
Chee had assured that the group will engage stakeholders who are not on the committee but have strong interests, views and ideas to contribute to the review process.
On how the review group’s efforts to improve the stock market would differ from efforts taken by SGX alone, Loh said that the group will look at issues beyond the regulatory aspects of the equity market.
It will involve the overall public equity ecosystem in its review, and look at improving the liquidity of the stock market at both the demand and supply sides, said Loh.
“I think (the group will look at) demand for stocks on the stock market and active constant price discovery, which would also enhance liquidity,” he added.
On whether the group would also engage sovereign wealth funds such as Temasek and GIC, Loh acknowledged broader calls made for these funds to invest in the local market.
However, he said that their mandates on what they can invest in are “very clear”. For instance, GIC invests outside Singapore, in line with its mandate to preserve and enhance the international purchasing power of the Singapore reserves it manages over the long term.
“I think what we’re (the group) trying to look at is not just supply, but how to have very focused demand into the stock market,” said Loh.
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